This course goes beyond the basics and addresses important practical issues that an experienced practitioner must know about S corporations.
Learning Objectives
- Examine operational issues, keeping track of AAA, and how to calculate basis, apply distribution rules, and avoid loss limitations
- Describe corporate level taxes, particularly the rules of the built-in gain tax also known as the BIG tax and strategies for lowering the BIG tax
- Describe the rules governing the redemption and liquidation of an S corporation
- Examine the issues in compensation planning in S corporations, including limitations in a family-controlled business
- Be familiar with the results of the case studies that reinforce key learning points
Major Topics
- Detailed rules governing basis in the shareholder's debt and stock
- AAA
- Built-in gains incurred from the sale of assets
- Redemptions and liquidations
- Compensation planning for shareholders
- Tax Cuts and Jobs Act of 2017, particularly the importance of 199A and the conversion of an S corporation to a C corporation (because of the C corporate income tax of a flat 21% and the repeal of the alternative minimum tax for C corporations)
